Mariana Mazzucato on the Impact of Stock Buybacks
“Currently, far too many non-financial companies spend more on stock buybacks and dividend payouts than on human capital, machinery, and research and development. Such activities may drive the company’s stock prices in the short term, but they reduce the funds available for reinvestment in employees and widen the gap between those who control capital and those who do not.”
– Mariana Mazzucato, Professor of Economics of Innovation and Public Value at University College London and author, in “Rethinking the Entrepreneurial Role of the State – Governments should not just look at numbers. Instead, they should focus on the right direction for inclusive and sustainable growth”, guest contribution in Handelsblatt of September 4, 2023, No. 140
